Kathmandu : The U.S. Embassy in Nepal has launched an investigation into the alleged misuse of foreign grants provided to sexual and gender minority organisations in the country.

According to the embassy, an investigation has been launched into SGM organisations, including Blue Diamond Society (BDS), for allegedly misusing foreign grants by reallocating them to other projects.

Cruiseaids Nepal, in collusion with the Family Planning Association of Nepal (FPAN), illegally operated a hormone clinic but later it was shut down under pressure. The project was funded by USAID.

“No assistance has been provided to operate a hormone clinic. We have launched an investigation however,” according to an embassy source.

Nepal has not so far legalised gender reassignment and hormone clinics. However, in defiance of the law, some SGM organisations, including BDS and Mitini Nepal, have launched a campaign to promote these treatments despite the legal restrictions. On the other hand, SGM activists and organisations, including Mayako Pahichan Nepal, oppose these procedures, calling them illegal and citing health risks.

Under pressure, the FPAN has already clarified its involvement in operating a hormone clinic with the support of BDS and Mitini Nepal. BDS is reported to have hired a community member to coordinate the clinic.

According to the guidelines issued by the Ministry of Home Affairs in 2069 BS, SGM members, including homosexuals, third genders, intersex and bisexuals can acquire Nepali citizenship under “other” category to apply for a reservation quota under the Public Service Commission regardless of their choice to undergo hormone therapy or gender reassignment surgery.

SGM rights activists have protested these treatments alleging that they pose health risk. Bipin Dhimal, who was reportedly taking hormone therapy and was battling various health issues including thyroid problem, died some months ago, raising concern about health risks associated with the treatment among the SGM community.

Despite these implications, some SGM organisations, including BDS and Mitini Nepal, continue to promote these procedures. Bhumika Shrestha, a transwoman activist, demanded that SGM members should have the right to undergo these procedures if they choose.

She has been advocating for gender reassignment and hormone therapy. However, other SGM activists argue that there is no need to undergo gender reassignment surgery or hormone therapy to qualify for SGM membership.

Parliamentarians of Nepal have raised the issue of gender reassignment and the operation of hormone clinics, reasoning that the act is against the constitution and law.

During a meeting of the House of Representatives on Tuesday, Ranju Jha, a parliamentarian from Janata Samajwadi Party, pointed out negative consequences if hormone clinics and gender reassignment continues.

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